Correlation Between State Bank and TR Property
Can any of the company-specific risk be diversified away by investing in both State Bank and TR Property at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining State Bank and TR Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and TR Property Investment, you can compare the effects of market volatilities on State Bank and TR Property and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in State Bank with a short position of TR Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and TR Property.
Diversification Opportunities for State Bank and TR Property
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and TRY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and TR Property Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Property Investment and State Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on State Bank of are associated (or correlated) with TR Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Property Investment has no effect on the direction of State Bank i.e., State Bank and TR Property go up and down completely randomly.
Pair Corralation between State Bank and TR Property
Assuming the 90 days trading horizon State Bank of is expected to generate 1.57 times more return on investment than TR Property. However, State Bank is 1.57 times more volatile than TR Property Investment. It trades about 0.03 of its potential returns per unit of risk. TR Property Investment is currently generating about -0.12 per unit of risk. If you would invest 9,880 in State Bank of on August 30, 2024 and sell it today you would earn a total of 100.00 from holding State Bank of or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. TR Property Investment
Performance |
| Timeline |
| State Bank |
| TR Property Investment |
State Bank and TR Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and TR Property
The main advantage of trading using opposite State Bank and TR Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, TR Property can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TR Property will offset losses from the drop in TR Property's long position.| State Bank vs. Axfood AB | State Bank vs. Playtech Plc | State Bank vs. Gaming Realms plc | State Bank vs. Wheaton Precious Metals |
| TR Property vs. Samsung Electronics Co | TR Property vs. Samsung Electronics Co | TR Property vs. Hyundai Motor | TR Property vs. Toyota Motor Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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